Kitty Party works as a community lossless lottery system. Where smaller pools are created say with 5 people each contributing $10 in phase1 (Collect). In phase 2(Stake), the collective amounts are stored on a DeFi platform in order to generate additional revenue. At the end of phase 2 we have the payout wherein a random lottery winner is chosen to be receive the pooled amount.
Kitty Party is a borrowing/lending system that aims at attracting both crypto and non-crypto users alike. By having a unique system in which users that are do not own any crypto-currency are also able to participate, it aims to serve as a gateway to introduce newbies to the crypto ecosystem. By having a unique system in which users that are do not own any crypto-currency are also able to participate, it aims to serve as a gateway to introduce newbies to the crypto ecosystem. Let us start by introducing the main characters in our system: Kitty Kreator – The person that is familiar with cryptocurrency, and the one to initiate and get people together. Kittens – The people (2 or more) that may or may not be familiar with cryptocurrencies, they join the Kitty Party. Let’s say the Kitty Kreator gathered 5 friends, as such there will be 5 rounds. Having a random friend become a winner each round (every friend will win at least once). Every time the money is placed in the contract, it accrues interest, as such, everyone will always walk away with more money than they put in. While each friend gets a lump sum of money at once. The Kitty Kreator will get the original money he placed in as well as the interest gained at the end of the five rounds. Let’s give an example: A Kitty Kreator gathers 5 friends(A,B,C,D and E), each willing to put $1 each per round. The Kitty Creator will have to put up $5=5×1 him/herself, this allows for the Kreator to earn the interest, as well as to act as a security, in case any of the Kittens breaks away from the party. A Kitten can be someone that contributes directly to the Kitty Party through cryptocurrency or someone that pays through the Kitty Kreator through fiat. The Kitty Kreator will then pay on behalf of the Kitten to the Kitty Party
The 5 Kittens put in $1. The interest is accrued over a set period (e.g. amount to $0.50). The random lottery is run, and let’s say Kitten C wins. Kitten C will now get $5.50 ($1 x 5 + $0.50), and the party proceeds to round 2.
Round 2 happens exactly the same way round 1 did, except now, since Kitten C had already won, only Kittens A, B, D and E are able to win. Kitten B wins the second round and walks away with $5.50 again (assuming interest is the same as the first round).
Kitten C decides to leave the party and no longer pay the $1. Kittens A, B, D and E are the only ones paying to the Kitty Party. As such, to make up for the loss difference, difference will be paid up by the Kitty Kreator to make up for the loss due to Kitten C walking away, as such the next winner(Kitten A) will walk away with $5.50, while the Kitty Kreator will have a receive a reduced amount by the end of all the rounds.
The Kitty Party ends either when the Kitty Kreator runs out of money or the all Kittens have won at least once.